Latest news with #Jaruwan
New York Post
05-07-2025
- Business
- New York Post
More luxury homebuyers paying with cash this year, report says
More luxury homebuyers are paying with cash to acquire properties this year, a report from Coldwell Banker Real Estate revealed. The company said in its '2025 Mid-Year Report' that more than half of over 200 surveyed Coldwell Banker luxury property specialists reported an uptick in wealthy buyers purchasing homes with cash. Advertisement Roughly 34.1% said there has been a 'slight increase' while 16.6% said there has been a 'significant' rise in that method. Mortgage rates have played into the increase in buyers paying cash to acquire homes, according to National Association of Realtors Chief Economist and Senior Vice President of Research Lawrence Yun. 'High mortgage rates are not appealing for borrowing, and, therefore, that induces the wealthy to pay all cash for real estate (after selling off a few of their assets),' he told FOX Business. 4 Mortgage rates have reportedly played into the increase in buyers paying cash to acquire homes. Jaruwan photo – Advertisement Many have been turning to personal savings, stocks or funds they netted from selling another property as the 'primary' means to make their luxury home purchases, according to the Coldwell Banker Real Estate report. Meanwhile, for 45.4% of specialists, cash purchases have stayed at their current levels so far this year, per the report. On the flip side, just 3.9% of the Coldwell Banker luxury property specialists indicated their clients were moving away from buying homes through all-cash deals, Coldwell Banker Real Estate said. 4 A lot of luxury homebuyers are selling off some of their assets to help purchase the home, according to Yun. Golden_hind – Advertisement The trend in cash purchases comes as roughly 68% of Coldwell Banker agents said rich homebuyers they work with are 'maintaining – or increasing – current real estate exposure.' 'We've had a lot of volatility along with macroeconomic and geopolitical uncertainty this year. There's been a lot of transition and that's actually turned a lot affluent buyers toward real estate,' Jenna Stauffer, a Florida-based broker and Global Real Estate Advisor for Sotheby's Internal Realty, told FOX Business. 'Real estate proves itself as an anti-fragile asset,' she continued. 'Unlike many investments that struggle under uncertainty, real estate tends to strengthen over time and remains one of the best long-term hedges against inflation. That's why so many smart investors and high net worth buyers are parking their money in property this year. They're using it to preserve and grow their wealth.' 4 Just 3.9% of the Coldwell Banker property specialists said their clients were moving away from buying homes through cash-only deals. – Advertisement While wealthy buyers are sticking to their guns when it comes to what they want from a home, Coldwell Banker Real Estate also said they 'are being strategic about their purchases and prioritizing aspects of the home that create value over aesthetic perfection' such as affordability, taxes, and investment potential. That could drive a rise in 'smart buyers' focused on 'discernment and strategy instead of pure indulgence,' according to the report. The report also shed light on how ultra-high net worth buyers with over $30 million in assets and 'aspirational buyer' worth $1-5 million are engaging with the luxury real estate market. Some in the latter category, faced with economic uncertainty, are approaching the market with caution, per the report. 4 Coldwell Banker Real Estate said that the wealthy buyers 'are being strategic about their purchases and prioritizing aspects of the home that create value over aesthetic perfection.' Andy Dean – Michael Altneu, vice president of Coldwell Banker Global Luxury, said in the report that the luxury market 'has continued to show strength' in 2025 but various factors have 'tempered a more full-scale rebound in market activity.' The Institute for Luxury Home Marketing data showed a 1.7% increase in sales of luxury single-family homes in the period spanning January to the end of May from those seen in the same timeframe last year and a 1.8% uptick in sale prices, according to Coldwell Banker Real Estate. For attached luxury properties, there was a 8.1% decrease in sales but the median transaction price went up an average of 8.4%. Advertisement Both types of properties saw year-over-year increases in supply during the first five months of the year, with luxury single-family homes posting a 19.6% jump and attached notching a 14.8% rise, the report said. The U.S. saw active listings of single family homes, condos, townhomes and other types of housing reach over 1 million in May, a level that the country hadn't climbed above since the winter of 2019, according to a report released in early June.
New York Post
13-06-2025
- Business
- New York Post
Here's how much owning a home in 2030 will cost based on stagnant US salaries
Homeownership is about to cost an arm, a leg — and a second salary. A new analysis from HireAHelper, using Redfin housing data, paints a sobering picture of the next housing decade: by 2030, the cost of a median home will far exceed income growth in every US state. The national median home price is projected to climb to $615,103 by decade's end, while income gains lag behind — leaving households across the country priced out of homeownership unless their earnings rise dramatically. 7 A new study predicts that by 2030, home prices will outpace income growth in every US state, creating significant affordability gaps across the country. Jaruwan photo – Nowhere is the affordability crunch more severe than in Montana, where home prices are forecast to hit roughly $932,584. To keep up, the average household income would need to jump by an eye-popping 144%, reaching nearly $191,000. 7 According to a Redfin data analysis by HireAHelper, the national median home price is expected to hit $615,103, while wages won't keep up — especially in Western states like Montana and California. Konstantin L – Once considered a haven of affordable living, the state's housing market has spiraled upward amid a pandemic-fueled influx of remote workers. California, long a poster child for housing sticker shock, isn't far behind. The Golden State is projected to see its median home price climb to more than $1.23 million, requiring households to bring in more than $250,000 annually — nearly a 140% increase in average salary — to afford a typical property. While California boasts some of the country's highest wages, they haven't kept pace with the runaway market, the report notes. 7 In Montana, the median home is projected to cost over $932,000, requiring a 144% income increase for affordability. Andrew Kornylak – 7 California follows closely, with expected home prices topping $1.2 million and incomes needing to exceed $250,000. Rich – New York, to no one's surprise, is also poised for a pricing crunch. By 2030, the median home is expected to cost more than $780,000, while the income needed to buy it will need to surge past $179,000 — a 103% leap. Much of that growth is concentrated in dense metro areas like New York City, where demand continues to outstrip supply. Rhode Island and New Jersey round out the top five states with the biggest affordability gaps. In Rhode Island, median home prices could approach $855,000, with income requirements nearing $190,000 — a near doubling of current average earnings. 7 New York, which has long been expensive, will only become more so. goodmanphoto – 7 Even smaller states like New Hampshire and Wyoming are not immune, with affordability gaps growing due to stagnant wage growth and surging housing demand. K Issa/Wirestock Creators – And in New Jersey, residents will need to earn more than $210,000 annually to manage projected housing costs nearing $845,000. That would make it the second-most expensive state in terms of income required to afford a home, behind California. Even states not typically associated with sky-high real estate markets are feeling the squeeze. New Hampshire's projected home prices — just over $832,000 — would necessitate nearly $196,000 in annual income, while Utah's median home price is set to surpass $958,000. 7 Pandemic-era migration, remote work trends, and low housing inventory are contributing to the spike, especially in states like Idaho. Jeremy – Washington State, where housing demand remains strong in cities like Seattle, is expected to see median home prices top $900,000, with income needs nearing $187,000 — up 79% from today.
